1981 Cadillac Seville Elegante Classic - 4 Door Car - Two Tone on 2040-cars

Auto blog

Frustrated GM investors ask what more Mary Barra can do

DETROIT — General Motors Co Chief Executive Mary Barra has transformed the No. 1 U.S. automaker in her almost five years in charge, but that is still not enough to satisfy investors. Ahead of third-quarter results due on Oct. 31, GM shares are trading about 6 percent below the $33 per share price at which they launched in 2010 in a post-bankruptcy initial public offering. The Detroit carmaker's stock is down 22 percent since Barra took over in January 2014. After hitting an all-time high of $46.48 on Oct. 24, 2017, the shares have declined 33 percent. In the same period, the Standard & Poor's 500 index has climbed 7.8 percent. Several shareholders contacted by Reuters said GM could face a third major action by activist shareholders in less than four years if the share price does not improve. "I've been expecting it," said John Levin, chairman of Levin Capital Strategies. "It just seems a tempting morsel to somebody." Levin's firm owns more than seven million GM shares. Barra has guided the company through the settlement of a federal criminal probe of a mishandled safety recall, sold off money-losing European operations, and returned $25 billion to shareholders through dividends and stock buybacks from 2012 through 2017. GM declined to comment for this story, but the company's executives privately express frustration with the market's reluctance to see it as anything more than a manufacturer tied mainly to auto market sales cycles. GM's profitable North American truck and SUV business and its money-making China operations are valued at just $14 billion, excluding the value of GM's stake in its $14.6 billion Cruise automated vehicle business and its cash reserves from its $44 billion market capitalization. The recent slump in the Chinese market, GM's largest, and plateauing U.S. demand are ratcheting up the pressure. GM is one of the few global automakers without a founding family or a government to serve as a bulwark against corporate raiders. In 2015, a group led by investor Harry Wilson pressed GM to launch a $5 billion share buyback, and commit to what is now an $18 billion ceiling on the level of cash the company would hold. In 2017, GM fended off a call by hedge fund manager David Einhorn to split its common stock shares into two classes. Einhorn, whose firm still owned more than 21 million shares at the end of June, declined to comment about GM's stock price. Other investors said there were no clear alternatives to Barra's approach.

GM extends vehicle production cuts into mid-March due to global chip shortage

DETROIT — General Motors said on Tuesday it was extending production cuts at three North American plants until at least mid-March due to the global semiconductor chip shortage, while vehicles at two other factories would only be partially built. GM, whose shares dipped 1% after the announcement, did not disclose the impact volumes or say which supplier and vehicle parts were affected by the chip shortage. But it said it would focus on keeping production running at plants building its highest-profit vehicles, full-size pickup trucks and SUVs. GM said it intended to make up as much lost production as possible once the shortage chip eased. "Semiconductor supply remains an issue that is facing the entire industry. GM's plan is to leverage every available semiconductor to build and ship our most popular and in-demand products," GM spokesman David Barnas said. GM said it was extending downtime at its U.S. plant in Fairfax, Kansas, its Canadian factory in Ingersoll, Ontario, and its Mexican facility in San Luis Petosi until mid-March when it would reassess the situation, he said. In addition, GM would build but leave incomplete for final assembly vehicles at Wentzville, Missouri, and its Mexican plant at Ramos Arizpe. GM vehicles affected by the idled plants include the Chevrolet Malibu sedan, Cadillac XT4 SUV, Chevy Equinox, and GMC Terrain SUVs. Vehicles to be left incomplete for now included the Chevy Colorado, GMC Canyon pickups and Chevy Blazer SUV. This week, GM had said it was idling the three factories where it has now extended downtime and said it would halve production at a plant in South Korea. The chip shortage has affected many automakers, including Toyota, Volkswagen, Stellantis, Ford, Renault, Subaru, Nissan, Honda and Mazda. Asian chipmakers are rushing to boost production but say the supply gap will take many months to plug. German chipmaker Infineon said the shortage would get worse in the near term. The chip shortage is expected to cut global output in the first quarter by more than 670,000 vehicles and last into the third quarter, IHS Markit said. AutoForecast Solutions estimated total lost production this year could reach 1 million vehicles. Honda and Nissan said on Tuesday they would sell 250,000 fewer cars in total this financial year due.

2020 Cadillac CT4-V, CT5-V revealed, less powerful than predecessors

Expectations have reached stratospheric heights for the 2020 Cadillac CT4-V and 2020 Cadillac CT5-V, and for good reason: Their ATS-V and CTS-V predecessors were potent sports sedans with gobs of power and handling and braking to match. Now the new sedans have been revealed, and they're not what we expected. They each lose two cylinders compared with the other vehicles, and on paper, they don't look as capable. But we do have hope that these won't be the end-all, be-all performance Cadillacs. First, let's look at the cars. The CT4-V will be the base of the V brand, and it's our first look at the small luxury sedan. It has a roofline and window treatment more like past Cadillacs, eschewing the C-pillar garnish of the CT5. It also naturally gets dark trim and headlights, a unique spoiler and quad tailpipes to distinguish it as a V. Under the hood is a turbocharged 2.7-liter four-cylinder that is based on the engine in the new Chevy Silverado. It makes 320 horsepower and 369 pound-feet of torque, a far cry from the ATS-V's 464 horsepower and 445 pound-feet of torque. Cadillac CT4-V View 12 Photos Power goes through a 10-speed automatic transmission only. Both rear-wheel drive and all-wheel drive are available. It gets a mechanical limited-slip differential whereas the ATS-V had an electronically controlled limited-slip differential a la Camaro ZL1. The brakes have four-piston calipers at each corner versus six-piston front units and four-piston rear units on the ATS-V, and the rotors are smaller. Magnetic Ride Control remains standard on the rear-drive version, but the all-wheel-driver version sticks with conventional shocks. The new CT4-V is about 200 pounds lighter than the ATS-V, though, and it has 50/50 weight distribution. Additionally, both the CT4-V and the CT5-V have Super Cruise available as an option. Moving on to the CT5-V, it looks like a regular CT5 but with dark trim and lights, quad tailpipes and a unique rear diffuser. Instead of the CTS-V's 640-horsepower supercharged V8, the CT5-V uses a twin-turbo 3.0-liter V6 making 355 horsepower and 400 pound-feet of torque. Changes made to the 3.0 for the CT5-V include a new intake system and new exhaust, and it revs higher too. Like the CT4-V, it comes with a 10-speed automatic and either rear-wheel drive or all-wheel drive. It does get the electronically controlled limited-slip differential.